An Evaluation of the Effectiveness of Performance Appraisal Tools in Tanzanian Banking Sector: A Case of Commercial Banks in Mwanza City

Gefi, H. Y. (2014) An Evaluation of the Effectiveness of Performance Appraisal Tools in Tanzanian Banking Sector: A Case of Commercial Banks in Mwanza City. Masters thesis, The Open University of Tanzania.

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Abstract

Performance appraisal (PA) has been described as a “vehicle for creative competitive advantage” for organizations be it public or private sector. This study evaluated the effectiveness of performance appraisal tools in Tanzanian banking sector in Mwanza City, Tanzania. A case of four banks: CRDB, NMB, Exim Bank and CBA. The study adopted a descriptive research design incorporating quantitative and qualitative approach. The sample of 102 employees was surveyed using in-depth interview and questionnaire. Quantitative data was analyzed descriptively using SPSS while thematic analysis was used to analyze qualitative data. The findings of this study revealed that all banks use the same tool that is Management by Objectives (MBO). The tool was found useful to the banks as it is brings about the required outcomes of its use, employees have higher level of understanding about the tool that is they understand how to conduct it, they are trained about PA and that PA is fair in terms of procedures, information, relationship and equity. The study also found that employees especially managers are not in favor of the tool because it does not allow multiple rating. Furthermore; the study revealed that in one of the bank only management and senior level employees are appraise. Recommendations were given that all employees should be appraised regardless of their positions and that the banks should consider the use of the tool that will enable employees to get wider understanding of their performance from different raters.

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